To find and graph the Total Cost (TC), Average Fixed Cost (AFC), Average Variable Cost (AVC), Average Cost (AC), and Marginal Cost (MC) from the given table, follow these steps:
Given Table:
| Unit | FC | VC |
|---|---|---|
| 0 | 50 | 0 |
| 1 | 50 | 40 |
| 2 | 50 | 60 |
| 3 | 50 | 75 |
| 4 | 50 | 90 |
| 5 | 50 | 140 |
Step 1: Calculate Total Cost (TC)
Total Cost (TC) is the sum of Fixed Cost (FC) and Variable Cost (VC).
TC = FC + VC
Step 2: Calculate Average Fixed Cost (AFC)
Average Fixed Cost (AFC) is the Fixed Cost (FC) divided by the number of units produced.
AFC = FC / Unit
Step 3: Calculate Average Variable Cost (AVC)
Average Variable Cost (AVC) is the Variable Cost (VC) divided by the number of units produced.
AVC = VC / Unit
Step 4: Calculate Average Cost (AC)
Average Cost (AC) is the Total Cost (TC) divided by the number of units produced.
AC = TC / Unit
Step 5: Calculate Marginal Cost (MC)
Marginal Cost (MC) is the change in Total Cost (TC) when one more unit is produced.
MC = ΔTC / ΔUnit
Calculations:
| Unit | FC | VC | TC | AFC | AVC | AC | MC |
|---|---|---|---|---|---|---|---|
| 0 | 50 | 0 | 50 | – | – | – | – |
| 1 | 50 | 40 | 90 | 50 | 40 | 90 | 40 |
| 2 | 50 | 60 | 110 | 25 | 30 | 55 | 20 |
| 3 | 50 | 75 | 125 | 16.67 | 25 | 41.67 | 15 |
| 4 | 50 | 90 | 140 | 12.5 | 22.5 | 35 | 15 |
| 5 | 50 | 140 | 190 | 10 | 28 | 38 | 50 |
Graphing the Costs:
To graph the costs, plot the units on the x-axis and the respective costs on the y-axis. You will have separate lines for TC, AFC, AVC, AC, and MC.
This step-by-step guide should help you understand how to calculate and graph the different types of costs from a given table.